Buying Or Leasing Cars: Pros and Cons of Both

Buying new cars or any car at that you usually have a question of whether you should buy or lease. Whatever you choose you will have the vehicle we hope you can drive but leasing and buying new cars are two different things.

Really there is no right or wrong answer when buying a car because there are pros and cons to each one. To lease or buy a car with an auto loan comes with the question of where you are financially mindful currently. Plus what are your needs for a car? Do you need it for long-distance driving?

So the question you are probably here for is should you buy or lease a car and we have pros and cons for both.

What’s the difference between buying a leasing vehicle?

If you don’t have the cash in hand you could go the auto financing route like most of us do. An auto loan will allow you to buy the car and pay it over the next few months or years. With an auto loan, you shouldn’t go over seven years for the loan. The minimum for a car loan should be around three years.

Leasing is basically in the simple form of a long-term rental that you sign for as long as you want with the car dealership. There are rules such as miles per year and what is covered on the vehicle during the lease.

The pros of buying a car

You get control of the new or used car. Once you pay for the car it’s yours and you are free to do with the vehicle as you see fit. When you pay in full for the car your not paying any interest which is good but if you have an auto loan you may be paying high interest depending on what your credit score is, that’s why you may want to see what your score is and work with the appropriate car dealership such as a bad credit car dealer near you.

If auto financing is the option you go with you can spread it out over months with a reasonable car payment that makes the car affordable for you. We do suggest if you shopping for auto loan rates you may want to discuss with a local credit union and get the best terms you can.

The cons of buying a car

There is a high price on the vehicle you want or can be a high down payment for the used car. When you buy a car it depreciates as soon as you drive it off the lot by 15-20% which is a bummer but is true.

Upgrading a car doesn’t make sense like you would your smartphone. Financially it’s a stupid move. That’s why most people stick with one car until it dies which isn’t all that bad if you’re just looking for a car you drive maybe 25 miles a day or less.

Leasing a car cons

Leasing your vehicle makes it possible for you to get upgrades more frequently. Leasing a car makes life a little easier you can turn it in and get a new car every three years or so. You don’t have to deal with deprecation. There is a lower cost to leasing a car.

The bad things about leasing a car are it’s not yours you basically rent it for three years and if you break the lease you may have to pay. Another downfall is you can’t modify the vehicle. You also have to keep the car in good condition or you can be paying for that too.

The best advice we have for cars

What we suggest you do is know what you are getting into with buying or leasing a car and do your homework on what vehicles are going to make the most sense for you yearly and financially. Some of the areas to look for cars are Florida in the area of Jacksonville and Tampa.